by Steven C
Last Friday, February 3, New York Attorney General Eric Schneiderman sued banking’s Big Three– J.P. Morgan Chase, Bank of America, and Wells Fargo, for the use of an electronic mortgage database that took part in the nation’s mortgage crisis. According to the article these companies performed illegal and deceptive practices through this database, called the Mortgage Electronic Registration System or MERS, which contained false documents used in foreclosure proceedings. Schneiderman said that the MERS was created by mortgage companies in order to evade recording fees, to avoid needing to publicly record mortgage transfers, and to help them rapidly sell mortgages to gain more profits. This helped these companies save 2 billion dollars in mortgage recording fees.
I think this article caught my eye because it shows how big corporations such as J.P. Morgan and Bank of America are using databases to their advantage in very unethical ways, and try to use it to make a loophole in avoiding recording fees made from selling mortgages. These big companies are basically stealing from the government by trying to avoid these county fees in order to gain more money, making those bankers richer while many more people lose their homes. It is very unfortunate that it is too late for those people to get their homes back, but I suppose at least something is done against those companies who have taken advantage of the mortgage system.
n.p. “Bank of America, Wells, and Chase’s Legal Woes Rises as New York Sues.” San Francisco Business Times. 6 Feb 2012. Web. 6 Feb 2012 http://www.bizjournals.com/sanfrancisco/morning_call/2012/02/bank-of-america-wells-and-chases.html